Basic budgeting includes fixed expenses; the things you pay the same amount on every month and your variable expenses. These include the expenses that may fluctuate from month to month. If your financial goal is to pay off debt remember every dollar has a job.
An interesting practice is to look back at the past few months of spending to see where your money has actually been spent. It may surprise you to seen how many unnecessary items have been purchased. Even if you’re not working on a goal, it’s important to incorporate an impulse spending line item in your budget.
Whatever is left in your checkbook after all expenses paid is your net income. If there is nothing left, you are living pay check to pay check. This is a bad place to be. There are many online sources for budgeting, even your bank may have online tools to use.
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3 Tips To Help You Transform Wasteful Spending into Purposeful Spending